Journalist

Lee Hugh
  • Tariffs and rising costs bite Hyundai despite record quarterly revenue
    Tariffs and rising costs bite Hyundai despite record quarterly revenue SEOUL, April 23 (AJP) - Despite posting record revenue, Hyundai Motor saw its profitability come under intense pressure as tariffs and rising costs eroded margins. Revenue rose 3.4 percent year on year to 45.9 trillion won, marking the highest first-quarter figure on record. The increase was supported by strong sales of high-margin SUVs and hybrid vehicles, even as global industry demand contracted 7.2 percent. Hybrid vehicles accounted for 17.8 percent of total sales, with the U.S. market reaching a record 24.8 percent. This helped the company expand global market share despite weakening demand. Operating profit, however, fell 30.8 percent to 2.51 trillion won, with the operating margin narrowing to 5.5 percent from 8.2 percent a year earlier. The result came in at the lower end of market expectations, with estimates compiled by FnGuide pointing to operating profit in the range of 2.4 trillion to 2.6 trillion won. A breakdown of earnings drivers showed that tariff-related costs were the single largest drag on profitability, reducing operating profit by 860 billion won. Lower volumes cut earnings by 247 billion won, while a weaker product mix — driven by higher incentive spending — reduced profit by a further 337 billion won. The earnings pressure came despite relatively resilient sales. Wholesale volumes declined to 976,000 units from 1.0 million a year earlier, reflecting weaker industry demand and temporary disruptions, including supply chain issues and geopolitical uncertainty. Cost pressures were also evident in the company's structure, with the cost of sales rising to 82.5 percent of revenue, up 2.7 percentage points from a year earlier, driven largely by higher raw material prices. The automaker said raw material costs - including nickel, lithium and precious metals — added more than 200 billion won in additional expenses in the first quarter and are expected to remain elevated into the second quarter, even as some prices begin to stabilize. It also acknowledged production disruptions following a fire at a key engine valve supplier, though it expects to normalize output from April and recover lost production in the second half through global production adjustments. Regional dynamics also weighed on profitability. Incentive spending remained elevated in Europe amid tightening emissions regulations, while India emerged as a rare bright spot, with record sales and minimal incentive burden. Despite pressure in its core automotive business, Hyundai's financial arm delivered stable earnings growth supported by asset expansion, partially offsetting the decline in vehicle operations. Looking ahead, the company said it is accelerating autonomous driving development through collaboration with Nvidia to secure data and enhance competitiveness. It is also shifting its China strategy toward export-driven growth, with exports already accounting for around 40 percent of local sales. Shares of Hyundai Motor closed at 532,000 won, down 1.7 percent on the day. 2026-04-23 17:38:43
  • JB Financial Posts Q1 Net Profit of 166.1 Billion Won, Lifted by JB Woori Capital
    JB Financial Posts Q1 Net Profit of 166.1 Billion Won, Lifted by JB Woori Capital JB Financial Group said in a regulatory filing on the 23rd that it posted first-quarter net profit of 166.1 billion won, up 2.1% from a year earlier. The group reported a return on equity attributable to controlling shareholders of 11.2% and a return on assets of 0.94%. Its preliminary common equity Tier 1 ratio stood at 12.61%, up 0.03 percentage points from the end of last year. By affiliate, JB Woori Capital led results with net profit of 72.7 billion won, a 24.3% increase from a year earlier. Banking units Jeonbuk Bank and Gwangju Bank posted net profit of 39.9 billion won and 61.1 billion won, respectively, weighed down by higher selling, general and administrative expenses tied to special retirement programs and losses from securities valuation. JB Asset Management and JB Investment reported net profit of 1.1 billion won and 3.0 billion won, respectively. The group’s second-tier subsidiary Phnom Penh Commercial Bank in Cambodia posted net profit of 12.4 billion won, up 21%. JB Financial also said its board approved a quarterly cash dividend of 311 won per common share, about double the 160 won paid for the first quarter of last year.* This article has been translated by AI. 2026-04-23 17:36:06
  • Chip rally, GDP surprise drive KOSPI to fresh record high
    Chip rally, GDP surprise drive KOSPI to fresh record high SEOUL, April 23 (AJP) - Geopolitical uncertainty failed to derail South Korea’s stock rally, with the KOSPI closing at a fresh all-time high Thursday as strong chip earnings and an upside GDP surprise lifted investor sentiment. The benchmark index closed at 6,475.81, up 0.90 percent, while the KOSDAQ ended at 1,174.31, down 0.58 percent. The Bank of Korea said first-quarter real GDP expanded 1.7 percent from the previous quarter, nearly double its February forecast of 0.9 percent and the fastest growth in five and a half years, supported by stronger-than-expected semiconductor demand. Semiconductor shares extended gains after Samsung Electronics marked a record closing high, gaining 3.22 percent to close at 224,500 won ($151.5). Meanwhile, SK hynix reported record first-quarter earnings, reinforcing expectations for robust AI-driven memory demand, while its shares rose 0.16 percent to 1,225,000 won. However, battery shares retreated after a sharp recent rally driven by expectations that Middle East tensions would strengthen demand for electric vehicles and U.S. energy storage systems. Shares of LG Energy Solution fell 3.72 percent to close at 466,500 won. Samsung SDI, which had gained for six straight sessions, declined 4.40 percent to 630,000 won. Auto shares also weakened. Shares of Hyundai Motor swung between gains and losses before closing lower, down 1.66 percent to 532,000, as investors weighed record revenue against a sharp drop in profitability. The company said on Thursday that its first-quarter consolidated operating profit fell 30.8 percent from a year earlier to 2.51 trillion won, with more than 1 trillion won in profit decline driven by U.S. auto tariffs, higher warranty provisions tied to exchange-rate volatility and weaker global demand amid the Iran war. Revenue, however, rose 3.4 percent year-on-year to a record 45.94 trillion won for a first quarter, supported by strong hybrid vehicle sales and improved performance in its financing business. Its operating margin stood at 5.5 percent. Affiliate Kia also slipped 1.00 percent to 158,400 won. Meanwhile, energy and industrial names outperformed, with Doosan Enerbility jumping 5.78 percent to 122,600 won. The gains came after a memorandum of understanding (MOU) signed during Tuesday’s South Korea-Vietnam summit between Korea Electric Power Corp. and PetroVietnam, Vietnam’s National Oil and Gas Group to explore the feasibility of cooperation in nuclear power development. Samsung C&T also advanced 6.31 percent to close at 320,000 won and HD Hyundai Electric rose 3.58 percent to 1,129,000 won. The KOSDAQ traded lower through much of the session, briefly falling below 1,153 at midday before trimming losses to close down 0.58 percent at 1,174.31, pressured by foreign and institutional selling. Declines were led by battery stocks, with EcoPro falling 4.32 percent to 157,200 won, EcoPro BM sliding 5.73 percent to 205,500 won and biopharma stock Alteogen edging down 0.56 percent to 357,500 won. In the currency market, the Korean won weakened slightly, with the dollar trading at 1,480.30 won, compared with the previous close of 1,476.0 won. Markets elsewhere in Asia closed lower, with Japan’s Nikkei 225 closing at 59,140.23, down 0.75 percent, China’s Shanghai Composite ending at 4,093.25, down 0.32 percent, and Hong Kong’s Hang Seng Index closing down 0.99 percent at 25,904.09. Investor sentiment weakened as renewed military tensions, including reports of air defenses activated in parts of Tehran, fueled concerns over broader conflict escalation, while oil prices surged toward $97 a barrel. 2026-04-23 17:29:23
  • South Korea Chicken Market Shifts to bhc Lead as BBQ, Kyochon Battle for No. 2
    South Korea Chicken Market Shifts to bhc Lead as BBQ, Kyochon Battle for No. 2 South Korea’s chicken franchise market is increasingly taking on a “one leader, two challengers” structure centered on bhc. With bhc pulling further ahead on sales, BBQ and Kyochon Chicken are locked in a close fight for second place. As of April 23, industry officials said Dining Brands Group, which operates bhc, posted 614.7 billion won in standalone sales last year, becoming the first in the sector to surpass 600 billion won in annual revenue. Sales rose 19.9% from 512.7 billion won a year earlier, while operating profit increased 23% to 164.5 billion won. The company’s momentum has been driven by successful new menu items. “Quasak King,” launched last year, topped 7 million in cumulative sales in about a year, matching the popularity of its signature “Bburinkle.” “Sweet Chili King” also exceeded 1 million units within three months of launch. bhc also benefited from maintaining a stable supply system for fresh and cut chicken despite external supply uncertainty, supporting franchisee profitability. BBQ, which had long competed with bhc for the top spot, saw growth slow and the gap widen again. In 2024, BBQ narrowed the sales gap to 6.6 billion won and aimed to reclaim No. 1, but last year its sales rose just 4.3% to 527.8 billion won. Operating profit fell 19.4% to 69.0 billion won. The sales gap with bhc expanded to about 86.9 billion won. BBQ said the results reflected upfront spending tied to its 30th anniversary marketing, overseas expansion and logistics infrastructure. BBQ now operates about 700 stores in 57 countries, including the United States, and is focusing on strengthening its competitiveness abroad. Kyochon Chicken, in third place, rebounded and closed in on BBQ. Kyochon F&B posted 517.4 billion won in sales last year, up 7.6% from a year earlier, returning to the 500 billion won range for the first time in three years. Operating profit jumped 126.2% to 34.9 billion won. The sales gap with second-place BBQ narrowed to about 10.4 billion won from 22.4 billion won in 2024. Kyochon attributed the improvement to new products such as Mala Red, growth in subscribers to its app, and stronger demand tied to rising interest in professional sports. Industry watchers said the key storyline this year is likely to be the battle between BBQ and Kyochon for No. 2, rather than a fight for the top spot. Each company is refining its strategy. bhc is maintaining a plan to launch two new products a year, introduced “Soy Garlic King” in March, and is focusing on efficiency by deploying its automated frying robot, “T-bot.” BBQ is emphasizing “execution and results,” pursuing AI-centered management innovation and strengthening its global strategy with the United States, Europe and China as key hubs. Kyochon plans to bolster growth by developing new menu items and expanding new businesses such as sauces and craft beer. An industry official said, “With uncertainties growing at home and abroad — including rising raw material prices and intensifying competition in the delivery market — marketing and new-product competition is likely to become even fiercer.”* This article has been translated by AI. 2026-04-23 17:28:24
  • Bank of Korea to Issue Up to 6.6 Trillion Won in Monetary Stabilization Bonds in May
    Bank of Korea to Issue Up to 6.6 Trillion Won in Monetary Stabilization Bonds in May The Bank of Korea said on the 23rd it plans to issue up to 6.6 trillion won ($) in Monetary Stabilization Bonds next month. It will sell 6 trillion won through competitive bidding and 500 billion to 600 billion won through subscription-based sales. Competitive auctions will be held seven times: four auctions for 91-day bills (May 4, 11, 18 and 26) and one each for 1-year (May 13), 2-year (May 6) and 3-year (May 20) maturities. The subscription auction is set for May 27. For early redemptions, the central bank will auction 1 trillion won on May 8 and 2 trillion won on May 19.* This article has been translated by AI. 2026-04-23 17:27:15
  • Hyundai E&C, DL E&C tout design and financing in Seoul Apgujeong 5 redevelopment bid
    Hyundai E&C, DL E&C tout design and financing in Seoul Apgujeong 5 redevelopment bid Hyundai Engineering & Construction and DL E&C, both bidding for the redevelopment of Apgujeong District 5 in Seoul’s Gangnam district, have unveiled their proposed terms. Hyundai E&C is emphasizing a luxury residential complex featuring AI-based services and panoramic river-view design, while DL E&C is pitching a construction cost of 11.39 million won per 3.3 square meters and what it calls the industry’s lowest interest rate. Hyundai E&C said April 23 it proposed the name “Apgujeong Hyundai Galleria” for the complex. The company said the name combines “Apgujeong Hyundai,” long seen as a symbol of top-tier housing, with “Galleria,” a department store it described as a landmark for upscale lifestyle in the area. Hyundai E&C said it will work with Hyundai Motor Group to apply advanced robotics across the site, including demand-responsive transport, or DRT. It said residents would be able to call an unmanned DRT shuttle from their homes as part of a mobility system linking Apgujeong “like a single city.” The proposal also includes nano-mobility support, porter robots and robo-stations for contactless deliveries, parking and EV-charging robots for a smart parking system, and unmanned firefighting robots. On design, Hyundai E&C said it would go beyond 100% Han River views for all units by offering “Zero Wall” wide panoramic views extending up to 240 degrees, and apply a 3-meter coffered ceiling height to enhance openness. It also proposed upscale amenities, including a large community facility called “Club Apgujeong,” described as 12 pyeong per household, and a “The Circle 420” loop-style community space it said would be the first of its kind in Korea. Hyundai E&C said it plans to work with Hanwha so residents can access services through a dedicated membership, including use of VIP lounges at Galleria’s luxury store, shopping benefits and exclusive programs. A Hyundai E&C official said Apgujeong is an area where preference and expectations for “Apgujeong Hyundai” are high beyond Districts 2 and 3, where the existing complex stands. The official said the company will carry forward District 5’s identity while completing “Apgujeong Hanyang” as a new “Apgujeong Hyundai.” DL E&C proposed the name “ACRO Apgujeong,” applying its high-end ACRO brand, and highlighted what it described as more predictable and stable construction and financing terms. It said it made a firm offer of 11.39 million won per 3.3 square meters, more than 1 million won below the estimated construction cost presented by the association, and offered a “zero burden from price increases” solution aimed at insulating the project from inflation spikes. DL E&C said it proposed a “zero added margin” rate for essential project financing, calling it among the lowest rates in recent redevelopment projects. It also set a construction period of 57 months, four months shorter than Apgujeong District 2, to reduce interest costs on members’ relocation loans and project financing, it said. The company also proposed an unusual loan-to-value ratio of 150% for relocation financing, saying it was a response to tighter lending rules and higher borrowing costs that have made relocation funding harder to secure. On profitability, DL E&C proposed “zero” construction costs for commercial facilities and offered to expand retail space to 5,069 pyeong (about 16,730 square meters) from the association’s original plan. It said that would increase commercial sales revenue by 660 million won per household. It also said it would increase usable area per household by 1,535 pyeong (about 5,065 square meters) to maximize members’ asset value. A DL E&C official said the company included multiple fixed terms to minimize members’ burden and risk, calling them conditions rarely seen in other redevelopment projects. The official said DL E&C also concentrated its product design capabilities to deliver Apgujeong District 5 as a high-end residential complex aiming to be the best in South Korea. Apgujeong District 5, a redevelopment of Apgujeong Hanyang Apartments Phases 1 and 2, is being 추진되고 있다 under Seoul’s fast-track integrated planning program. Once completed, it is set to include 1,397 households across eight buildings, from five basement levels to 68 stories above ground. It is the only Apgujeong redevelopment project being contested through competitive bidding. * This article has been translated by AI. 2026-04-23 17:25:04
  • Prime Minister Kim Min-seok Visits Yeosu Petrochemical Complex to Review Naphtha Supply
    Prime Minister Kim Min-seok Visits Yeosu Petrochemical Complex to Review Naphtha Supply Prime Minister Kim Min-seok visited LG Chem’s plant at the Yeosu National Industrial Complex in South Jeolla Province on the 23rd, toured its naphtha cracking center (NCC) and urged steady production and supply of petrochemical products to help stabilize domestic supply chains. After receiving a briefing from LG Chem officials on global naphtha supply and demand, Kim shared concerns about the crisis facing the petrochemical industry, including instability in naphtha supplies linked to the Middle East, and discussed steps to stabilize supply. An LG Chem official said petrochemical products make up about 70% of everyday items people use, adding that the number of products totals about 50,000. The petrochemical industry said it will actively cooperate with government policy by working to expand naphtha imports and by doing its best to ensure smooth supplies of basic feedstocks such as ethylene and propylene, as well as key products including polyethylene (PE) and polypropylene (PP). Kim also instructed the Ministry of Trade, Industry and Energy to make every effort to stabilize naphtha supply by maintaining a close coordination system with petrochemical companies. The government said it will keep its emergency economic response system in place and respond with full force to minimize industrial damage stemming from developments in the Middle East. * This article has been translated by AI. 2026-04-23 17:24:16
  • South Korea’s People Power Party Moves to Seek Unification Minister Jeong Dong-young’s Dismissal
    South Korea’s People Power Party Moves to Seek Unification Minister Jeong Dong-young’s Dismissal South Korea’s People Power Party decided to make it party policy to submit a National Assembly motion recommending the dismissal of Unification Minister Jeong Dong-young over his remarks about a “North Korean Kusong nuclear facility.” The party said the comments could damage trust between South Korea and the United States. The party adopted the plan at a lawmakers’ meeting on the 23rd at the National Assembly. Afterward, party leader Jang Dong-hyeok convened a closed-door meeting with People Power Party lawmakers who chair the Assembly’s foreign affairs and unification, defense and intelligence committees. Speaking to reporters after the meeting, Jang said Jeong was committing a “serious act of self-harm” to diplomacy and security by leaking information. “I think this is a matter that warrants impeachment, but we agreed first to submit a dismissal motion as party policy,” he said. Floor leader Song Eon-seok, who had called a day earlier for Jeong to be replaced, again urged his dismissal. Intelligence Committee Chairman Shin Seong-beom said a minister’s remarks carry different weight than comments by private institutions or researchers. “Personally, I think Jeong’s repeated remarks about North Korea’s nuclear program may have raised doubts on the U.S. side,” Shin said. Defense Committee Chairman Seong Il-jong said it was a serious problem that trust in the South Korea-U.S. alliance had been shaken. He said the committee held a full meeting that morning, but the Democratic Party did not attend. “It’s very regrettable. We recessed rather than adjourned so they can still come in,” he said. Jeong rejected the party’s criticism as political and harmful to the national interest. Speaking to reporters at Cheondogyo’s Suun Hall in Seoul’s Jongno district, he said those who stirred the issue likely had their own motives. “It may be entertaining to keep amplifying the controversy, but it will harm the national interest,” he said. Jeong said it was not the first time the United States had limited intelligence sharing on North Korea, but the dispute was being portrayed as an “unprecedented situation.” He also said the place name “Kusong” had been mentioned in a U.S. congressional report. “The essence is that the North Korean nuclear issue is serious,” he said, adding that sanctions, pressure and blockade have not worked and that a shift to dialogue and negotiations is needed.* This article has been translated by AI. 2026-04-23 17:19:13
  • South Korea Raises Fines Fivefold for Illegal Fishing in EEZ, Allows Forced Removal of Abandoned Ships
    South Korea Raises Fines Fivefold for Illegal Fishing in EEZ, Allows Forced Removal of Abandoned Ships Foreign vessels caught fishing illegally in South Korea’s exclusive economic zone will face fines up to five times higher under legislation passed by the National Assembly. The government will also be able to forcibly remove long-idled ships left without authorization at port facilities. The Ministry of Oceans and Fisheries said revisions to the Act on the Exercise of Sovereign Rights over Foreign Fishing in the Exclusive Economic Zone, along with amendments to the Port Act and other related bills, cleared the National Assembly’s plenary session on the 23rd. The EEZ fishing sovereignty law revision is aimed at tougher enforcement against illegal fishing by foreign vessels by sharply raising maximum fines. For unlicensed vessels, the cap rises fivefold to 1.5 billion won from 300 million won, a move intended to strip away the financial incentive for illegal operations and strengthen deterrence. The ministry said it is also tightening on-site enforcement. Fisheries management teams and the Korea Coast Guard have formed joint mobile task units to strengthen responses, including seizures. For serious violations such as operating without a license or intruding into territorial waters, authorities are handing vessels over at sea to the Chinese coast guard so they can face penalties in both countries, the ministry said. Oversight of long-term non-operating ships abandoned at port facilities will also be strengthened. Under the revised Port Act, port authorities can order restoration to the original condition, and if an owner fails to comply, the authorities may carry out an administrative enforcement action directly. Revisions to the Act on the Entry and Departure of Ships will apply the same tugboat business registration and related standards to tugboats operating at port facilities outside designated port zones as those working inside port zones. The ministry said the change is expected to close gaps in tugboat oversight and supervision. Also passed were amendments to the Marine Waste and Marine Contaminated Sediment Management Act, clarifying that measures to block marine inflows of waste include waste collection activities, and revisions to the Port Transportation Business Act, specifying that mayors and provincial governors who operate locally managed ports may sign pier operation contracts. Minister of Oceans and Fisheries Hwang Jong-woo said the government will continue enforcement and institutional improvements to eradicate illegal fishing, adding that it will move to update subordinate regulations and ensure smooth implementation of the bills passed in the plenary session.* This article has been translated by AI. 2026-04-23 17:18:19
  • South Korea Passes Law to Shift Science and R&D Policy Power to Regions
    South Korea Passes Law to Shift Science and R&D Policy Power to Regions South Korea’s Ministry of Science and ICT said a bill to enact the Act on Promoting Region-Led Science and Technology Innovation passed the National Assembly’s plenary session on the 23rd. The measure is intended to institutionalize a region-centered science and technology policy framework and to decentralize research and development authority and funding to local governments to strengthen regional innovation capacity. Key provisions include building region-led governance and dedicated agencies; promoting block-funding-style, region-directed R&D and wider-area, multi-province projects; developing innovation actors to boost local research capability; and expanding investment and support for regional science and technology. Under the law, mayors and governors of cities and provinces will draw up five-year regional science and technology innovation plans, and the central government will provide administrative and financial support. Major policies will be reviewed through regional science and technology advisory councils under the mayors and governors. The law also creates a basis to designate and establish dedicated agencies by region after consultation with the ministry. The legislation introduces an R&D system aimed at greater local autonomy. The government will designate certain national R&D programs as regional R&D projects, considering their links to regional policy, and will operate them under an evaluation system tailored to that purpose. Cities and provinces will be able to pursue not only their own R&D projects but also wider-area projects in cooperation with neighboring local governments. Support to strengthen regional research capacity will be expanded, including fostering local public research institutes, designating hub research institutions, and establishing a basis to support regional universities and corporate research labs. The government will also promote the revitalization of science and technology clusters such as R&D special zones and cooperation among clusters. The law includes measures to encourage voluntary investment by local governments. Mayors and governors may set and announce regional R&D investment targets based on their fiscal conditions, and the government plans to provide administrative and financial support to local governments with strong performance in meeting targets or delivering results. The bill is scheduled to take effect on Jan. 1, 2027, after Cabinet approval and promulgation. The government said it will support implementation through follow-up steps, including drafting an enforcement decree. Deputy Prime Minister and Science and ICT Minister Bae Kyung-hoon said the law will allow local governments to set the direction of R&D investment with greater autonomy. He said the government will communicate closely with local governments and stakeholders while preparing subordinate regulations and related measures, so regions can foster strategic industries over the long term and drive innovation on their own, he said. * This article has been translated by AI. 2026-04-23 17:14:00